The Auditor General of Pakistan has released a comprehensive audit report detailing the deep financial crisis and systemic administrative decline inside the Pakistan Steel Mills Corporation Limited. According to the state disclosure, the country premier steel manufacturing infrastructure has accumulated a staggering net loss of two hundred and forty five point nine billion rupees. The final evaluation spans more than a decade of severe financial deterioration, with the supreme audit institution explicitly attributing the industrial collapse to a combination of weak internal governance, poor cash management, and an extended period of complete operational inactivity.
According to the specific breakdowns provided in the newest fiscal publication, the state owned industrial enterprise observed its accumulated deficit balloon by more than one thousand three hundred and fifty five percent over the past several financial cycles. The financial liabilities escalated dramatically from a baseline deficit of sixteen point nine billion rupees recorded during the fiscal years 2008 and 2009, eventually climbing to the current peak of two hundred and forty five point nine billion rupees by the end of the fiscal years 2023 and 2024. Furthermore, the federal auditors raised serious transparency concerns after discovering that the corporation management has failed to complete and formalize its official financial statements for consecutive financial years, creating an accountability vacuum around the state asset.
The investigative report identified multiple structural failures and administrative anomalies that have compromised the financial baseline of the organization. Among the notable administrative discrepancies was the improper accounting treatment of public equity worth eleven billion rupees, alongside highly outdated ownership documentation for over one thousand six hundred acres of prime corporate land. The federal team also pointed out a significant compliance violation where a senior executive was placed into a leadership position in direct defiance of the statutory rules laid out under the State Owned Enterprises Act. Adding to the commercial distress, the inspectors discovered that finished steel inventories worth seventeen point six billion rupees have remained unsold and exposed to depreciation since the industrial plant ceased daily processing operations back in the summer of 2015.
Operationally, the entity faces severe cash constraints due to unresolved on site theft, mismanaged institutional assets, and the completely unauthorized civilian occupation of nearly two thousand residential company quarters. The corporate entity is also shedding over one point one billion rupees annually due to unaddressed financial discrepancies in water distribution costs. Historical data reveals that between the fiscal years 2008 and 2009 and the fiscal years 2023 and 2024, the entity registered an average annual net loss of twenty five point five billion rupees. The solitary instance of profitability observed during the fiscal years 2021 and 2022 was merely the product of a paper based asset revaluation exercise, rather than any genuine industrial output or sales recovery.
To protect the corporation from total liquidation over the years, the federal government extended massive cash injections and stabilization loans totaling one hundred and six point two billion rupees between 2013 and 2025. This heavy borrowing caused internal finance costs to jump from four hundred and sixty four million rupees in the fiscal years 2008 and 2009 to twenty billion rupees by the fiscal years 2023 and 2024, while basic administrative overheads more than tripled over the identical period. With total liability structures mounting to three hundred and fifty eight billion rupees, the Auditor General has formally recommended an immediate structural overhaul, the urgent placement of a permanent chief executive officer, and the deployment of a comprehensive economic revival model leveraging public private partnerships or asset leasing mechanisms to mitigate ongoing public fund losses.
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